Your division has the following order history January 997 Fe

Your division has the following order history:

January 997

February 996

March 1024

April 1006

May 1043

June 974

July 1010

If you are to generate a three-period weighted moving average forecast using 50% for the most current period, 30% for the second period, and 20% for the third period, what is your forecast for the number of orders in August?

Your Answer:

Solution

Given data as per the question :

The current period : July = 1010.

Next Most recent period : June = 974.

Next recent Period : May = 1043.

The percentages are for :

Forecast for Number of Orders for August = 0.5* July + 0.3 * June + 0.2 * May

= 0.5* 1010 + 0.3 * 974 + 0.2 * 1043

= 1005.8

Forecast for Number of Orders for August = 1005.8